Late last week, the Brown Administration released details of the Governor’s 2015-16 proposed Budget. RCRC’s Governmental Affairs staff analyzed the proposed Budget, and provided Members with an initial update late Friday evening. The Rural Rundown is an in-depth look at the Governor’s 2015-16 proposed Budget, its implications for member counties, details of RCRC’s advocacy efforts on specific issue items, and an insider perspective into the reasoning and rationale behind elements of the proposal.

Key Issues/Changes for RCRC Member Counties:

Provides $644,000 for the State’s Payment in Lieu of Taxes (PILT) Program for 2015-16;

Estimates that additional payments for Pre-2004 Mandate Claims will be $533 million, of which counties would receive nearly $390 million;

Outlines a Five-Year Infrastructure Plan for a variety of capital projects related to transportation, water, schools, and correctional facilities;

Yesterday, Secretary of the U.S. Department of Agriculture Tom Vilsack announced that counties would receive payments for 2014 under the Twenty-Five Percent Fund Act of 1908. This announcement was made in light of the Congress’ inability to reauthorize the Secure Rural Schools and Community Self-Determination Act (SRS) for 2014. In an absence of SRS reauthorization, the 1908 Act mandates that States receive 25 percent payments from timber sales and other enterprise activities on National Forest lands. California’s counties are expected to receive $8.6 million in lieu of SRS payments for FY 2014, compared to more than $35 million counties would receive under SRS – a near 75 percent decrease.

If Congress were to enact SRS funding for 2014, it is expected such an action would need to occur in the coming weeks to avoid exercising the 25 percent rule; however, it is expected, that if reauthorization were to occur much later, adjustments to SRS payments would be made to account for monies being forwarded to counties that receive payments from the 1908 Act. Complicating matters is that Federal Payment in Lieu of Taxes (PILT) payments would also need to be adjusted in light of an absence of SRS reauthorization. Federal PILT readjustments would occur at a much later date.

RCRC continues to advocate for reauthorization and long-term funding for SRS, and has recently launched a multi-pronged advocacy and media strategy urging Congress to reauthorize funding and to retroactively fund Fiscal Year 2014 SRS. RCRC will be attending the National Association of Counties Annual Legislative Conference at the end of February to meet with federal Congressional members, as well as Agency and Congressional staff, to discuss the need for these critical funds to support our local schools and roads.

The Assembly Water, Parks and Wildlife Committee, chaired by Assembly Member Marc Levine (D-10), held an informational and oversight hearing this week on California’s Flood Control Planning and Infrastructure. Ellen Hanak of the Public Policy Institute of California provided the Committee members with an overview of California’s flood risk. Hanak stated that recent studies indicate that the State needs to spend $1.4 billion a year to close its “investment gap” in flood protection infrastructure. California currently spends about $600 million annually.

Leslie Gallagher briefed the Committee on the Central Valley Flood Protection Plan and the role of the Central Valley Flood Protection Board. Rick Poeppelman discussed the State Plan of Flood Control and the role of the U.S. Army Corps of Engineers. Tina Curry of the Office of Emergency Services spoke on flood preparedness and emergency response, while Gary Bardini with the Department of Water Resources (DWR) covered the DWR FloodSafe program and Proposition 1E Financing. Randy Fiorini discussed the Delta Stewardship Council’s Delta Levee Strategy, followed by Melinda Terry from the California Central Valley Flood Control Association who explained local flood control agencies role in flood control.

Each of the panel members who testified pointed to the need to increase spending on flood protection infrastructure. A background paper prepared by Committee staff can be accessed here.

The U.S. Department of Labor’s Employment and Training Administration (DOL ETA) recently announced they would delay release of their draft Workforce Innovation and Opportunity Act (WIOA) regulations. The WIOA included a set of statutory deadlines for the release of various regulations, reports, and associated implementation workload requirements, including a Notice of Proposed Rulemaking (NPRM) to implement WIOA that was scheduled to be released on January 18, 2015.

While DOL ETA did not provide a specific target date for release of the NPRM, they responded to ongoing questions through a statement that they would continue working closely with other mandated partners to develop the regulations, with publication of the proposed regulations anticipated to be released Spring 2015. Out of concern that various provisions of WIOA go into effect July 1, 2015, as mandated by federal statute, the DOL ETA has stated they anticipate releasing operating guidance and technical assistance around the same time they release the NPRMs.

The WIOA was enacted to reauthorize and modernize the Workforce Investment Act of 1998, which serves as the nation’s employment and job training program. WIOA provides federal funding to states for job training, education, and employment-related services for unemployed and underemployed workers and youth.

Detailed information on the WIOA statutory deadlines can be accessed here.

The failure of the previous Congress to pass a bill addressing the need to reorganize wildfire funding meant that supporters would have to reintroduce the measure this Congress; and it did not take long. On Tuesday, January 6, 2015, one day into the new Congress, Representative Mike Simpson (R-Idaho) reintroduced his bill to move a portion of appropriated wildfire suppression funds into an emergency account, mimicking the funding mechanisms for other natural disasters. “The Wildfire Disaster Funding Act of 2015” (H.R. 167), has nine California House Members as cosponsors. Last year’s version of the bill had more than half of the California Congressional delegation signed on to the bill as a cosponsor. The same level of support is expected from the California delegation moving forward.

The House Natural Resources Committee, which has jurisdiction over the U.S. Forest Service, the Bureau of Reclamation, and the Endangered Species Act, has been reorganized by its new chairman, Representative Rob Bishop (R-Utah). Of note to RCRC Member counties, the Public Lands Subcommittee will be chaired by Representative Tom McClintock (R-Placer), with Representative Doug La Malfa (R-Butte) serving as Vice Chair. This subcommittee has traditionally held jurisdiction over the U.S. Forest Service and other forest-related measures/issues.

Chair Bishop also consolidated all water and power functions into a new Subcommittee on Water, Power, and Oceans. Both McClintock and La Malfa will serve on this panel, which is being Chaired by Representative John Fleming (R-Louisiana). Endangered species and National Environmental Policy Act (NEPA) issues will be dealt with at the full Committee level, diminishing jurisdiction of another subcommittee to only federal lands issues. The House Natural Resources Committee gains ten new Republicans, including Representative Paul Cook (R-Inyo/Mono/San Bernardino). Another California Republican, Representative Jeff Denham (R-Stanislaus) will rejoin the Committee, which had been chaired by Representative Doc Hastings (R-Washington). Hastings chose not to seek re-election in 2014.

While negotiations continue to craft a California drought relief bill that both the House and Senate can support, House Democrats have reintroduced last year’s bill to increase water supplies by funding efficiency, conservation, and recycling projects. The “Water in the 21st Century Act” (H.R. 291) would increase funding for existing programs, create a loan program for large-scale regional projects, and establish guidelines for State and local agencies to address drought conditions. Californians who have sponsored the legislation include Grace Napolitano, John Garamendi, Lois Capps, Jared Huffman, Judy Chu, Anna Eshoo, Janice Hahn, Mike Honda, Barbara Lee, Alan Lowenthal, Scott Peters, Lucille Roybal-Allard, Raul Ruiz, Brad Sherman, Norma Torres, and Juan Vargas. Senator Boxer has introduced S 176 on the Senate side which mirrors H.R. 291.

A bipartisan majority of the House has approved legislation to overhaul the federal rulemaking process. The “Regulatory Accountability Act” (H.R. 185) was approved by a vote of 250-175, and would require advance notice of major proposed rules and require federal agencies to choose the least-costly rules that meet legal objectives. Similar legislation passed the House last year, but was not considered in the Senate. President Obama has threatened to veto the legislation if it passes the Senate, claiming that the measure would “impose unnecessary new procedures on agencies and invite frivolous litigation.”

The U.S. Forest Service (USFS) will waive fees at most of its day-use recreation sites on January 19, 2015, in commemoration of Martin Luther King Jr. Day. The USFS will observe a total of five Fee-Free Days in 2015. Details on the USFS Fee-Free Days can be accessed here.

RCRC members are encouraged to submit comments on regulatory matters to state and federal regulatory bodies, and to provide a copy to RCRC’s Government Affairs staff. Click “Read More” to access information related to the current status of regulations impacting California’s rural counties.

Endangered and Threatened Wildlife and Plants; Threatened Species Status for West Coast Distinct Population Segment of Fisher: Proposes to list the west coast distinct population of fisher as threatened under the U.S. Endangered Species Act. Agency: U.S. Fish and Wildlife Service Status: Draft published on October 7, 2014 for a 90-day comment period, comment deadline recently extended to February 5, 2015. Proposed regulation and related documents can be accessed here. RCRC Comments: Staff is seeking input from member counties. RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Grazing Regulatory Action Project: Develops a program to enhance the environmental benefits and mitigate water quality impacts of livestock grazing. Agency: State Water Resources Control Board Status: State Water Resources Control Board recently completed closed, invitation-only listening sessions with targeted stakeholders. First public meetings to discuss the project begin on January 9, 2015, with an initial draft proposal expected in early 2015. Information on the program can be accessed here. RCRC Comments: Staff is seeking input from member counties. RCRC Advocate: Staci Heaton sheaton@rcrcnet.org